OVM

Consensus Allocation

The Optimization Validation Machine is our asset allocation algorithm that any entity can run to help optimize all deposited assets to create, vote, and finalize Asset Optimization Proposals, or AOP's.

This is similar to how Chainlink verifies prices, or how EVM POS chains validate transactions, but instead, validators optimize the lending pool unborrowed assets to ensure high interest rates, liquidity, and safety.

Aided Through Consensus

Apart from the on-chain asset allocation that takes part per transaction, our rebalancing algorithm, there is also consensus based asset allocation.

Participation

Anyone can become a validator by staking and having a balance. This ensures all validators are not bad actors and have an interest in both the protocols success and the asset they are assisting in optimizing's well doing. This is done by running our OVM. The OVM is a base layer machine that anyone can run and customize.

The main goal is for validators to vote on the best asset allocation for all unused deposits but the system can also be used to mitigate risk in certain situations.

How it works:

• Validators run the OVM.

• Validators transact to create an AOP.

• Validators vote on the new AOP.

Safety

As a byproduct of the OVM system, participants are able to mitigate risk under certain conditions and circumstances. In the scenario where risk occurs, a voting process can begin to either rebalance or withdraw a portion or all aggregated funds to ensure safety of user assets.